Behavior of Successful Family and Non-Family Executives in German Family Firms

Abstract

Many studies of family firm failures have identified non-family members in leading firm positions as a reason. Nonetheless, non-family members’ involvement in family firms is increasing. This study explores detailed leadership behaviors of successful family and non-family executives, thereby nuancing the previous failure claim. Systematic in-depth, open interviews were conducted with successful German family-firm executives. The questions incorporated the fifteen Dulewicz and Higgs (2005) dimensions of leadership behavior. This study has an abductive character; new research propositions are offered to provide insights into aspects of successful leadership behavior for executives in family firms. The results indicate that family and non-family executives show more similarities than differences. The few differences per-tain to “critical analysis & judgment”, “engaging communication” and “self-awareness”. The detailed results on those dimensions illuminate family firm (pre-)leadership processes such as succession, recruiting, selection and training. The paper discusses how the few identified differences between successful family and non-family executives of German family firms can, nevertheless, be important. Thus, this study contributes to what is required from non-family executives to have a positive effect on family firms and highlights leadership behavior that encourages and sustains family-firm’s well-being, both for their employees and for the owning family.